2024

Read

An analysis of over 3,200 GameFi projects shows 93% have failed, with token prices plummeting by an average of 95%. 
<a href="https://crypto.news/tag/gamefi/" target="_blank">GameFi</a>, a sector that combines gaming with decentralized finance, has faced a sharp decline after its initial surge during the 2022 crypto bull run, with a new report showing that 93% of projects have failed. 
A <a href="https://chainplay.gg/blog/state-gamefi-2024/" target="_blank" rel="nofollow">survey</a> by ChainPlay, in collaboration with Storible, analyzed over 3,200 GameFi projects and found that many of their tokens have dropped an average of 95% from their all-time highs. The report also shows that GameFi projects have an alarmingly short lifespan, with an average of just four months before most fade. 
<figure class="wp-block-image size-large">
 <img loading="lazy" decoding="async" width="649" height="1024" src="https://crypto.news/app/uploads/2024/12/sdhnoufidsn-649x1024.png" alt="Study: 93% of GameFi tokens plummet 95% from all-time highs - 11" class="wp-image-14316459">
 <figcaption class="wp-element-caption">
 State of GameFi projects in 2024 | Source: ChainPlay
 </figcaption>
</figure> 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “Compared to other crypto projects, such as memecoins with an average lifespan of one year and typical crypto projects with an average lifespan of three years, GameFi projects have an even shorter lifespan, highlighting their heightened instability and inability to sustain momentum.” 
 ChainPlay 
</blockquote> 
 You might also like: <a rel="" href="https://crypto.news/nansen-gamefi-market-set-for-301-5b-surge-amid-ecosystem-expansion/"> Nansen: GameFi market set for $301.5b surge amid ecosystem expansion </a> 
Oddly enough, <a href="https://crypto.news/tag/venture-capital/" target="_blank">venture capital</a> involvement in GameFi has also been hit or miss. While 42% of VCs have seen profits, with returns ranging from 0.05% to 1,950%, the majority (58%) have experienced losses, some as high as 99%, the data shows. Despite the overall downturn, top-performing VCs, including notorious firms such as <a href="https://crypto.news/tag/alameda-research/" target="_blank">Alameda Research</a>, have continued to see returns, though many others have faced steep declines, ChainPlay says. 
Although GameFi has cooled from its 2022 highs, the sector continues to attract investment, albeit with more caution. In 2024, VC funding for GameFi totaled $859 million, a 13% decrease from 2023 and a sharp 84.6% drop from its peak in 2022. ChainPlay suggests that success in the coming years “will likely depend on delivering solid gameplay experiences and building lasting, value-driven ecosystems.” 
 Read more: <a rel="" href="https://crypto.news/truflation-launches-gamefi-index-to-track-hottest-gaming-tokens/"> Truflation launches GameFi Index to track hottest gaming tokens </a>

Study: 93% of GameFi tokens plummet 95% from all-time highs

crypto.news

Other articles published on Dec 5, 2024

Bitcoin’s Rise to $100K Is Just the Beginning: Cathie Wood

XRP Drops After Record Surge: Will It Hit New Highs Again?

Tom Lee Predicts Bitcoin Rally Could Signal Upcoming Trends for S&P 500

Bitcoin is a bubble: Charles Bobrinskoy warns of speculative Bitcoin pump

Bitcoin Finally Shatters $100K Barrier After Decade-Long Journey: What’s Next?

Ripple CEO on Gensler's Replacement: 'Outstanding Choice'

Join our free newsletter for daily crypto updates!